An Israel-based innovation hub focused on the proof-of-stake blockchain network Tezos is bringing out a security device it says will better secure the staked assets of network validators.
- Tezos Israel said in a press release Monday that the hardware security modules, developed in partnership with Hub Security, will allow validators (also known as "bakers") to store their private keys in a secure cloud or in a separate physical unit, avoiding theft and network disruptions.
- Network validators must stake large amounts of cryptocurrency – that is, lock in funds a period of time – to qualify to validate the network. This approach requires "rigorous security," said Eyal Moshe, CEO of Hub Security.
- A kind of server, the new device is powered by a mini hardware security module (HSM) that acts as the user's "remote control" and software that allows "bank-level" two-factor authentication, according to the release.
- It is said to offer bakers a better alternative to cryptocurrency hardware wallets, which need to be physically connected to the computers running the network.
- The firms said using HSM technology enables "the safe use of encryption keys and secret information to operate sensitive applications while maintaining complete secrecy and privacy."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.